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In all of those cases there was legislation passed after the crises... in this case, the US government has already guaranteed all of the loans and has no way of
by trsohmers 9y ago
In all of those cases there was legislation passed after the crises... in this case, the US government has already guaranteed all of the loans and has no way of getting out of the without the US government defaulting. That only leaves room for printing money, which hurts all holders of US dollars.
- JumpCrisscross 9y ago> the US government has already guaranteed all of the loans and has no way of getting out of the without the US government defaulting. That only leaves room for printing money, which hurts all holders of US dollars If college students are defaulting on their student loans en masse that means we’re in a recession. Recessions are deflationary. Monetising the debt would just take the place of central bank bond buying, except in a more egalitarian way.
- notyourwork 9y agoI don't think that changes the premise of my point which is the government supports all situations where a bail out is needed.